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How the Georgia Runoffs Impact the Stock Market
As of Wednesday, Democrats are the projected winners for both Senate seats in Georgia claiming a democratic victory in both Houses of Congress and the White House.
Despite all the events that occurred this week, the stock market did relatively well last week as investors braced for a blue wave.
Some sectors benefitted from some expectations as both Democrats and Republicans rallied these last two months with promises of more stimulus and tougher regulations.
“According to the aggregation of odds at electionbettingodds.com, betting markets strongly favored victories by the Democrats.”
A Democratic sweep held the promise of passing additional fiscal spending measures that would weigh on bond prices but would be positive for bank stocks.
“Like bank stocks, energy shares soared following the positive vaccine news, with the S&P 500 energy sector up 32% in the final two months of 2020.”
However, this could also hurt the oil and gas shares in response to Biden’s socially conscious input.
Some sectors see a massive lift from the help of fiscal support and investors are more inclined to invest with the promise of an economic recovery.